Binary Options Daily Analysis – Greece Debt Deal Remains Elusive, Consumer Spending Disappoints

The week opened on a soft note as Asian markets declined. The Nikkei sagged .5% to 8793, as Mitsubishi Electric tumbled 15% after the government suspended dealings with the machinery-maker, due to accusations of overcharging. The Kospi and Hang Seng skidded 1.2%, and the Shanghai Composite dropped 1.5% as trading resumed after the week-long Lunar New Year. Australia’s ASX 200 posted a modest .4% loss.

Greece failed to reach a deal with private debt holders, pressuring European indexes. Banking shares fell 3.1%. The CAC40 slumped 1.6%, the FTSE fell 1.1%, and the DAX lost 1%. French Banks bore the brunt of the selling, as BNP Paribas, Societe Generale, and Credit Agricole each fell at least 6.5%. Yields on Portuguese debt continued to climb, amid mounting concerns that the country may need another bailout.

US stocks opened sharply lower, but they recovered most of their losses by the close. The Dow eased a mere 7 points to 12654, after falling as much as 130 points in the first hour of trading. The S&P 500 fell .3% to 1313, and the Nasdaq declined .2%.




Bank of America dropped 3% after Goldman Sachs downgraded the stock to “neutral” from “buy”. Goldman Sachs upgraded Morgan Stanley, but the stock still fell 1.9%.

US Airways surged 4.2% on rumors Delta may make an offer to buy the company.

Currencies
The Yen soared 1.4% to 76.34, a 3-month high, while the Dollar traded modestly lower against most other currencies. The Euro ticked up .2% to 1.3130, the Swiss Franc advanced .3% to 1.0896, and the Pound edged up 8 pips to 1.5701. The Australian Dollar eased .3% to 1.0596, as a drop in commodity prices weighed on the currency.

Economic Outlook
Personal income rose by .5% last month, slightly more than expected, but personal spending, which is considered more important, remained flat, falling short of forecasts for a .2% increase.

Tuesday’s reports will include the Case-Shiller home price index, Chicago PMI, employment cost index, and consumer confidence.

Tuesday’s star-studded earnings lineup will include reports from Amazon, Archer Daniels Midland, Broadcom, Eli Lilly, ExxonMobil, Level 3 Communications, Mattel, Pfizer, UPS, and Valero Energy.